CLA-2 CO:R:C:T 0 PR
TARIFF NO.:
Patrick D. Gill, Esquire
Rode & Qualey
295 Madison Avenue
New York, New York 10017
RE: The Country of Origin of Sequined Fabrics
Dear Mr. Gill:
This is in reply to your submission on behalf of Lace of
France, Inc., concerning the country of origin of certain
fabrics.
FACTS:
Fabric is manufactured and cut to length in France and then
sent to China where beads or sequins are applied for decoration
purposes. It is then exported to the United States.
Each sample is a highly decorative openwork fabric with a
preconceived inwrought floral design. One sample represents the
fabric prior to the application of beads or sequins. The other
sample has sequins outlining the flowers, or portions thereof.
The sequins take up less than 10 percent of the outer surface of
the sample. Please note that Customs can only rule on samples
submitted for our examination.
ISSUE:
The issue presented is whether the application of sequins to
fabrics in China will cause those fabrics to become products of
that country.
LAW AND ANALYSIS:
While the fabrics in question are described as "plain lace"
fabrics, it appears that the samples submitted were probably knit
on a raschel machine. Since knit fabrics are not considered lace
under the Harmonized Tariff Schedule of the United States
Annotated (HTSUSA), the samples, if knit, are not lace fabrics
for tariff purposes.
Section 12.130, Customs Regulations (19 CFR 12.130)
provides, in pertinent part, as follows:
(b) Country of origin. For the purpose of this section
* * * a textile or textile product, subject to section
204, Agricultural Act of 1956, as amended, imported
into the customs territory of the United States shall
be a product of a particular foreign territory or
country, or insular possession of the U.S., if it is
wholly the growth, product, or manufacture of that
foreign territory or country, or insular possession.
However, * * * a textile or textile product, subject
to section 204, which consists of materials produced or
derived from, or processed in, more than one foreign
territory or country, or insular possession of the
U.S., shall be a product of that foreign territory or
country, or insular possession where it last underwent
a substantial transformation. A textile or textile
product will be considered to have undergone a
substantial transformation if it has been transformed
by means of substantial manufacturing or processing
operations into a new and different article of
commerce.
* * *
(d) Criteria for determining country of origin. The
criteria in paragraphs (d)(1) and (2) of this section
shall be considered in determining the country of
origin of imported merchandise. These criteria are not
exhaustive. One or any combination of criteria may be
determinative, and additional factors may be
considered.
(1) A new and different article of commerce will
usually result from a manufacturing or processing
operation if there is a change in:
(i) Commercial designation or identity,
(ii) Fundamental character or
(iii) Commercial use.
(2) In determining whether merchandise has been
subjected to substantial manufacturing or processing
operations, the following will be considered:
(i) The physical change in the material or article
as a result of the manufacturing or processing
operations in each foreign territory or country, or
insular possession of the U.S.
(ii) The time involved in the manufacturing or
processing operations in each foreign territory or
country, or insular possession of the U.S.
(iii) The complexity of the manufacturing or
processing operations in each foreign territory or country, or
insular possession of the U.S.
(iv) The level or degree of skill and/or technology
required in the manufacturing or processing operations
in each foreign territory or country, or insular
possession of the U.S.
(v) The value added to the article or material in
each foreign territory or country, or insular
possession of the U.S., compared to its value when
imported into the U.S.
Much of the information which 12.130(b)(2) indicates may be
considered in determining whether work done in a second country
amounts to a substantial manufacturing or processing operation
has not been submitted. However, based on an examination of the
two samples, it is apparent that neither of the requirements of
12.130(d) have been met.
HOLDING:
The attachment of sequins in China to a lace-like fabric
manufactured in France does not, in this instance, amount to a
substantial transformation within the purview of 12.130, Customs
Regulations. Accordingly, the country of origin of the imported
fabric remains France.
Section 177.9(b)(1), Customs Regulations (19 CFR 177.9
(b)(1), states that a ruling is issued on the assumption that all
of the information furnished in connection with the ruling
request and incorporated in the ruling letter, either directly,
by reference, or by implication, is accurate and complete in
every material respect. Accordingly, the holding set forth above
applies only to the specific factual situation and the
merchandise identified in the ruling request. Should it
subsequently be determined that the information furnished is not
complete and does not comply with 19 CFR 177.9(b)(1), the ruling
will be subject to modification or revocation. If there is a
change in the facts furnished, the holding in this ruling may be
affected. In such an event, it is recommended that a new ruling
request be submitted in accordance with Section 177.2, Customs
Regulations (19 CFR 177.2).
Sincerely,
John Durant, Director
Commercial Rulings Division